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3 years ago

When interest rates rise, how might businesses and consumers change their economic behavior?

1 answer:

5 0

When the the interest rates increase then people and corporations will be much more hesitant to taking out loans. people and corporations will also be much more likely to save.<span />

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Suppose your grandma sends you $100 for your birthday and you deposit $100 into your checking account at the local bank. The res

krok68 [10]

Answer:

e. $90; $100

Explanation:

The reserve ratio also known as cash reserve ratio is the portion of deposit that commercial banks must hold onto, rather than lend out or invest. It is determined by the central bank of a country and it varies.

Deposit into local bank=$100

Reserve ratio=10%

reserve ratio=10% of $100

=10/100×$100

=0.1×$100

=$10

Bank reserve has increased by $100 - $10

=$90

Checkable deposit has increased by $100 dollars deposited.

5 0

4 years ago

Read 2 more answers

Lacy's Linen Mart uses the retail method to estimate inventories. Data for the first six months of 2019 include: beginning inven

Harman [31]

Answer:

A. $68,200

Explanation:

Retail Cost

Beginning inventory $60,000

$120,000

Plus: Net purchases. $312,000

$480,000

Goods available for sale $372,000

$600,000

Cost to retail percentage = $372,000 ÷ $600,000 = 62%

Less : Net sales

($490,000)

Estimated ending inventory at retail

$110,000

Estimated ending inventory at cost

62% × $110,000 = $68,200

4 0

3 years ago

Tabor company issues $20,000 of common stock to investors. recording this transaction will include a credit to:________

Dmitrij [34]

Tabor company issues $20,000 of common stock to investors. recording this transaction will include a credit to common stock. A security that symbolizes ownership in a firm is called common stock. After creditors, bondholders, and preferred stockholders have been paid, whatever assets are left over after a liquidation go to common stockholders.

In the firm, various kinds of equities are traded. In other words, it's a method of allocating corporate ownership; as a result, each share of common stock corresponds to a certain proportion of a corporation. One share, for instance, would represent one percent ownership of a firm with 100 outstanding shares.

To learn more about common stock, click here.

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7 0

2 years ago

When the government policy is to regulate the quantity of a good that can be bought and sold rather than the price at which it i

steposvetlana [31]

Answer:

Quota

Explanation:

Government uses various methods to intervene in markets.

Price regulation or price control is done through various tools like - Price Ceiling & Price Floor. Price Ceiling & Price Floor are maximum & minimum mandated prices by government respectively.

However, Price regulation tools have an indirect impact on Market Quantities, so government may also use direct quantity regulative tools. Quota is a quantitative restriction, specifying maximum limit of good that can be sold, exported or imported. Eg : Quotas are used as maximum import limits in international markets , as a non tariff (non tax barrier)

8 0

4 years ago

The income statement of Whitlock Company is presented here.

bazaltina [42]

Answer:

$1,146,800

Explanation:

Preparation for the operating activities section of the statement of cash flows for the year ended November 30, 2020

WHITLOCK COMPANY

Partial Statement of Cash FlowsFor the Year Ended November 30, 2020

Cash flows from operating activities

Net income $1,366,800

Adjustments to reconcile net income to net cash provided by operating activities..

Activities

Depreciation expense $70,000

Decrease in inventory $500,000

Decrease in accrued expenses payable ($100,000)

Increase in prepaid expenses ($150,000)

Increase in accounts receivable ($200,000)

Decrease in accounts payable($340,000)($220,000)

Net cash provided by operatingActivities $1,146,800

($1,366,800-$220,000)

Therefore the operating activities section of the statement of cash flows for the year ended November 30, 2020 is $1,146,800

3 0

3 years ago